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Metaverse – Prepare to Win

January 24, 2023 1248 1 Blockchain Emerging Tech Web 3.0 nasscom insights

Metaverse – Prepare to Win

Metaverse has taken a forefront position with recent technology advancements to potentially become the next evolution of the internet. While the term ‘Metaverse’ has existed for nearly two decades, the novel internet avatar has seen an accelerated development driven by technology revolution, consumer readiness and the rise of consumer-led marketing. NASSCOM and McKinsey & Company have jointly created this study, titled "Metaverse – Prepare to win," with the aim to delve deeper into the current trends in adoption, potential applications of the Metaverse, and opportunities for service providers to take an active role in developing this technology area in the next 3-5 years.

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Key Findings:

Metaverse Definition is Converging, with Familiar Components Integrated into a Novel Technology

  • Metaverse is a digital extension of the real world, defined by 4 attributes – Persistent, immersive virtual worlds, Interoperability, Concurrency, and Users having agency.
  • This novel internet avatar has seen accelerated development since 2020, driven by 6 factors including technology revolution, consumer readiness, rise of consumer-led marketing; significant PE, VC and M&A investment announced in metaverse.
  • In H12022, nearly $120 Bn worth of PE/VC investments and M&A commitments have been announced (based on estimates between Jan-May’22).

While early adoption is Strong, Full-Scale Vision Will Emerge in 8-10 Years

  • Enterprise and consumer metaverse adoption trends are similar to those of AI and internet in their early stages, 55%+ CXOs have at least one active Metaverse use case.
  • At-scale potential will be determined by 4 factors –
    • Clarity on return on investments – CXOs find it difficult to justify RoI
    • Technology readiness – nearly 1000X compute power needed
    • Talent readiness - <10%developers focus on 3D programming tools
    • Societal concerns – significant concerns with mental well-being and data privacy

Buyer’s Perspectives –Major Adoption Themes across All Key Stakeholders

  • For Customers – Customer engagement & marketing, virtualized sales channels, and multi-channel customer support.
  • For Employees – Virtual L&D, Immersive recruitment and onboarding, augmented workplace collaboration.
  • For Operations – Digital twins in production to assess real-time performance, simulated design and co-creation using digital twins.

Technology Industry Leaders’ Current Offerings and Future Imperatives

  • Service providers are focused on – Developing internal use cases for metaverse and expanding to serve client needs, Identifying replicable demand across verticals and investing behind targeted offerings and client PoCs, and Bringing together talent across service lines.
  • Winning in the Metaverse will need five major considerations:
    • Defining “Differentiation” and consultative selling posture
    • Investing in “Service Catalogues”
    • Strengthening “Client Capabilities”
    • Expanding “Delivery Capabilities”
    • Championing “Internal Adoption”

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